FTX Customer Nikolas Gierczyk is suing hedge fund Olympus Peak, claiming they owe him over $1 million from an FTX bankruptcy claim deal.
Olympus Peak, a hedge fund, is being sued by Californian Nikolas Gierczyk for failing to fulfill his entitlement to additional recovery, according to a Bloomberg report on Oct. 11.
He asserts that the hedge fund owes him substantial money from their agreement, as creditors are expected to receive a payout of approximately 129% to 146% from the FTX bankruptcy plan.
Gierczyk claimed that he and Olympus Peak reached a purchase agreement when the hedge fund acquired the bankruptcy claim at a “substantial 42% discount.” He was assured of any surplus distribution from the bankruptcy.
In a complaint submitted to the federal court in Manhattan on October 10, Gierczyk’s attorneys stated that Olympus Peak had explicitly stated they would not be fulfilling their agreement.
Olympus Peak is a hedge fund that is situated in Greenwich, Connecticut. It has not responded to Bloomberg’s request for comment at this time.
Nearly two years following the crypto exchange’s collapse in November 2022, a Delaware bankruptcy judge authorized FTX’s reorganization plan on Oct. 7.
According to a statement, the crypto exchange company asserts that it has accumulated property distribution assets valued at $14.7 billion to $16.5 billion. A sum exceeding the previous estimate of the amount owed to creditors by FTX is approximately $11.2 billion.
John Ray, who assumed the role of FTX CEO following the company’s bankruptcy filing, stated, “We are on the brink of returning 100% of bankruptcy claim amounts plus interest to non-governmental creditors through the most intricate and extensive bankruptcy estate asset distribution in history.”
As of November 2022, when the exchange filed for bankruptcy protection, 98% of FTX’s creditors will receive 118% of their claim, per the plan approved by Delaware bankruptcy Judge John Dorsey. This significant payout results from the robust cryptocurrency market over the past two years.
